Wall Street futures headed lower after a major U.S. retailer blamed its grim forecast on tariff concerns and oil prices rose.

European stocks fell on Thursday, as concerns over U.S. fiscal health kept Treasury yields elevated, while investors awaited business activity readings to gauge the impact of U.S. tariffs on the euro zone economy.

Treasury yield reaching 5% would be a hazard for stocks but buying a buying opportunity for bonds, one strategist says.

Treasury yield surges past 5% as Moody's strips last AAA rating. The 30-year climbed above 5.00% for the first time since April's tariff announcement, while the 10-year spiked 10 basis points to 4.54% amid escalating funding costs.

Bitcoin soared to record levels before dropping like a stone later in the day. U.S. equities saw their positive streak cut short.

The sell-off in bonds accelerated as investors continued to fret over the US deficit, with the 10-year yield rising past 4.5% and the 30-year topping 5%.

A rapid rise in long-term yields on U.S. Treasurys — and long-dated bonds of some other countries — is causing heartburn for stock-market investors. U.S. stoc